11%

Illovo’s Malawi unit is now set to focus more on export markets into the EU and the US to boost its sales volumes. The relaunch of its products in the Malawi market resulted in a 6 percent increase in local market sales volumes.

“Economic conditions during the year remained challenging with foreign exchange and interest rate movements affecting the business.

“Efforts by the commercial teams to switch product from lower value EU bulk raw sugar exports to higher value regional markets delivered improved revenues and margin,” the company said.

Inflation rates, with exchange and interest rate movements, were likely to affect Illovo Malawi’s profitability in the year to March 2017, but performance improvement and cost-control initiatives are expected to “improve margins”.